All Forum Posts by: Daniel Haberkost

@Jim Bern if you’re able to qualify for the loan I would start with house hacking. It’s a great first step in real estate investing as managing tenants who live with you is easier than a traditional rental. Additionally, in an expensive market like yours demand for single room rentals will be high.

Eliminating your living expense and beginning to build equity (potentially getting cash flow too) sets you up to be able to make investment number 2 much quicker as well.

@JD Randall if you’re going to try and work with a money partner, they’re going to need a reason to work with you. Since you don’t have cash or years of experience then finding a deal and bringing it to them is what you’re left with.

You can definitely get into real estate without much money but you’re going to need to bring substantial hustle. Yes, reaching out to sellers directly would be a good way to go, but do you have a plan of how to do so?

@Lewis Anderson I did this before moving to Colorado, joining a very large local BNI group was my way of getting clients along with telling everyone I knew what I was doing. Have you considered networking groups ?

 Hi Michelle, that's great that you've decided to make a change from the job you were in, many people stay in positions they're unhappy with for their entire lives. 

What are you doing to find wholesale deals? 

In general, it's definitely harder to find cash flowing rentals in higher priced markets (but it's always doable). I take it you're looking at properties listed on the market? There is a lack of inventory nationwide and it's especially pronounced in markets like yours and mine. Most properties here in CO Springs sell above ask and from what I read/hear that is also true in your area. 

Are you on any lists from local wholesalers? Their properties may occasionally cash flow (although inventory is so tight even "wholesale" deals are selling at ridiculous prices"). 

To answer the "what do you do when you lose motivation" I think about what an older version of myself would think. When I'm 70 how will I feel if I allowed myself to be lazy and not go out and do the things I want to do/achieve? Will I be content if I've lived a mediocre life and didn't live up to my potential? That certainly gets me up and moving quickly. 

I also just imagine having to work a normal job which has always sounded just absolutely horrible to me. That also motivates me very quickly.  

@Antonio Figueroa Correct me if I'm wrong, but it sounds like you can handle it and they're for sure worth it BUT it's going to consume your life entirely for a couple months? And that's really the issue? 

I would absolutely recommend going to a local meetup, that's where I met the guy who I consider to be my mentor. Talking to people who are actually doing this on a daily basis in your market will be invaluable, they can show you their process and you can ask questions in real time. 

 I've been house hacking here for several years and it's extremely easy to find reliable tenants who stick around in this market, all three of mine will have been with me for over a year within the next couple of months and two of them intend to stay 2 years minimum. Many of the split level houses here have basements that function a lot like their own unit and make house hacking very easy. 

If you go with a BRRRR for your first project I second @Colin Smith that you're going to need to look off market. I would start with those wholesalers but often times even wholesale deals are getting bid up to near market value..... Going direct to seller yourself is your best bet. I also want to emphasize that doing SOMETHING is most important, especially the way this town in progressing. Reach out anytime if you have questions. 

-Dan

 It's great that you're forward thinking enough to start figuring this out now. When I was in middle school I was buying/selling on Ebay to make money but the platform has changed quite a bit since then. 

The others have given you good advice and I would add that your generation has the advantage of having grown up with technology/social media. There are all kinds of business owners (and especially in real estate) who do not have an online presence simply because they do not know how to set it up. Can you find someone in the real estate world and help them with that way perhaps? 

Whatever you do, keep this mindset and ignore your peers who will wonder why you're working at your age. The decisions you make in high school/college will impact your for the rest of your life and if you make good ones it's amazing how much freedom you can have from a very young age.